Ever since I moved to Surat, one of my fundamental queries has been - whether the principles of Real Estate Economics applies to this city. Why Not? is a general reaction to those from Metro cities. The reality, however, is quite surprising and to understand that we have to go deeper into the forces that drive real estate supply and demand in Surat.
The Supply that is being created in all major asset classes - residential, commercial & industrial - is primarily being done to support the investment objectives to utilize the humongous cash-overflow from the textile & diamond businesses. So the Demand is primarily from those who want to park their extra funds and not from the consumers of the real estate that is being created.
In such a scenario the general principles of economics would not work as the Supply & Demand do not have a direct correlation.
So I am using the term ECONOMIX to describe such a scenario. This is the first blog of this series so do stay tuned in as I explore and unravel this MIX.
Saturday, December 15, 2012
Saturday, February 4, 2012
Housing Association Rules & Regulations
Here I am sharing a part of my presentation on Fast Forward Future, wherein the importance of standardized Housing Association Rules-Regulations is highlighted. Currently in tier-2 & 3 cities developers are handing over the development to a newly formed Housing Association and the new body does not have any starting point regarding what the Society rules should be. Most of them are first time users of apartments and do not have experience in the problems or discipline requirements of multifamily dwellings.
I have tried to make a point to the developers that it is in their best interest to create a standardized set of rules-regulations which will govern the residents of housing society. This set of documents shall be part of the Sale Agreement and hence all the residents will have to adhere to it. Once the Developer hands over the management of the Association to the residents, they can amend the document. By then they would have experience and awareness multifamily dwelling and hence would know which parts need modifications.
Such a document will certainly create a nice friendly relationship between the new neighbors as they will be guided by the do-dont's mentioned in the document.
I have tried to make a point to the developers that it is in their best interest to create a standardized set of rules-regulations which will govern the residents of housing society. This set of documents shall be part of the Sale Agreement and hence all the residents will have to adhere to it. Once the Developer hands over the management of the Association to the residents, they can amend the document. By then they would have experience and awareness multifamily dwelling and hence would know which parts need modifications.
Such a document will certainly create a nice friendly relationship between the new neighbors as they will be guided by the do-dont's mentioned in the document.
Sunday, January 22, 2012
Service Apartments
At REALSURAT.COM we keep on getting inquiries for monthly rentals. These come from various sources like visiting NRI families, project based professionals, families in transition, etc..
Very rarely we are able to provide them a solution that meets their requirements, in spite of their ability to pay higher rent.
Surat is one of India's fastest growing cities with major industrial and commercial hubs and to facilitate new professionals and self-employed migrants there needs to be an extended stay type of facility which are generally called "Service Apartments".
As this aspect of transient housing is missing in Surat I included it in my "Fast Forward Future" presentation at RSDS-11 to help developers and investors recognize Service Apartments as a niche-housing product.
Very rarely we are able to provide them a solution that meets their requirements, in spite of their ability to pay higher rent.
Surat is one of India's fastest growing cities with major industrial and commercial hubs and to facilitate new professionals and self-employed migrants there needs to be an extended stay type of facility which are generally called "Service Apartments".
As this aspect of transient housing is missing in Surat I included it in my "Fast Forward Future" presentation at RSDS-11 to help developers and investors recognize Service Apartments as a niche-housing product.
Tuesday, January 3, 2012
Women Workforce Housing
At RSDS-11, my presentation was on Fast Forward Future and part of it was focused on niche housing markets. One such housing product mentioned was housing for working women. Today there was an article in Economic times (http://toi.in/uBkmW5) on how large corporations are hiring more women. The entire presentation is available on http://www.slideshare.net/sumantkachru/fast-forward-future-sumant-kachru
This has already made a minor impact as financially capable working women have started investing in real estate for stability/wealth-creation. We can observe this trend in cities with higher working women population like Pune, Bangalore, Mumbai, Delhi, etc..
Real Estate Developers should pay attention to such niche demands to differentiate & diversify their product offerings.
Real Estate Developers should pay attention to such niche demands to differentiate & diversify their product offerings.
Sunday, January 1, 2012
Happy New Year - 2012
With global economics in turbulence and Indian political grid-lock every businessman, investor and professional is in confused state. To-Do to Not-To-Do, that's the dilemma. In such situation even common sense decisions seem like big gamble and slows down progress.
In contrast to this, the economic and political situation in Gujarat is very healthy. Government is very proactive and holds itself accountable to progress. The predictability of things to really happen decreases the risk perception. This allows businessmen and investors to take calculated risks and initiate new ventures.
Several actions by large corporations validate this, eg; Tata Nano, Ford, Maruti, etc...
So all this makes me very happy as those with disillusionment with the Global and National situation will look towards Gujarat as a safe-haven. This will grow Gujarat by leaps and bounds and make 2012 a very special year for all those who are already here and can take advantage of the progress.
In contrast to this, the economic and political situation in Gujarat is very healthy. Government is very proactive and holds itself accountable to progress. The predictability of things to really happen decreases the risk perception. This allows businessmen and investors to take calculated risks and initiate new ventures.
Several actions by large corporations validate this, eg; Tata Nano, Ford, Maruti, etc...
So all this makes me very happy as those with disillusionment with the Global and National situation will look towards Gujarat as a safe-haven. This will grow Gujarat by leaps and bounds and make 2012 a very special year for all those who are already here and can take advantage of the progress.
Friday, December 30, 2011
Real Surat Development Seminar 2011 (RSDS-11)
RSDS-11 was an initiative by ACTC to upgrade the professionalism, ethical practices and transparency in Surat Real Estate Industry. RSDS-11 is also a platform for networking, brainstorming, idea-creating, vision-setting and overall development of Surat Real Estate Industry.
This video provides the Preamble to RSDS-11:
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